Income received from a charitable/religious trust will be tax-exempt under Section 11, provided that the activity being performed is incidental to the attainment of objectives set by the trust/institution, and separate books of account are maintained by the particular trust/institution pertaining to the business. In this article, we look at some of the major exemptions provided under Section 11 of the Income Tax Act.
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The Tribunal held that prior to the 2023 amendment, returns filed within the broader time under Section 139 were eligible for exemption. It ruled that updated returns could not be denied benefits retrospectively.
The Tribunal ruled that exemption under Section 11(2) should not be denied solely due to delayed filing of Form-10. It directed reconsideration where the form was available during assessment.
The case examined whether property registered in trustees’ names violated Section 13(1)(c). The Tribunal held no violation as no benefit accrued to trustees, allowing exemption under Section 11.
ITAT Mumbai rules scholarships to Indian students studying abroad qualify as valid charitable application in India. Denial of 12AB and 80G set aside, clarifying registration stage scope is limited to objects and genuineness.
The court examined whether delay in Form 10B filing could be condoned but found the authority rejected it on unrelated grounds. It held that such rejection beyond the scope of Section 119(2)(b) was invalid and remanded the matter.
The Court held that procedural delay in filing Form 10B should not result in denial of exemption. It emphasized that substantive benefits under Sections 11 and 12 must be granted where eligibility exists.
The issue involved denial of exemption for failure to attach audited accounts with Form 10B. The Tribunal held such lapse to be procedural and directed reconsideration, emphasizing that substantive compliance cannot be denied for technical defects.
Madras High Court held that capital profit on the sale of the Fixed Assets of the Company cannot be taken directly to the Reserves & Surplus in the Balance Sheet and the same has to be routed through the Profit & Loss Account to arrive at the correct book profits u/s. 115JB of the Income Tax Act. Accordingly, the appeal stands dismissed.
The Tribunal held that audited accounts cannot replace documentary evidence for claiming application of income. The case was remanded for fresh verification.
The issue was whether a new trust can be denied registration due to lack of activities. The tribunal held that proposed charitable activities must be considered, and non-commencement alone is not a valid ground for rejection.
